Evaluating ROI for Coaching

Summary of Research Studies

Research conducted by PRICEWATERHOUSECOOPERS and ASSOCIATION RESOURCE CENTER INC., the first global study in 2008 surveyed 2,165 coaching clients from 64 countries.

•	"80% of coaching clients report a positive change in work performance, communication skills, interpersonal skills, and relationships
•	82.7% of coaching clients report “very satisfied”
•	96.2% say they would repeat it under same circumstances
•	Individual clients have seen a median return of 3.44 times the investment.”

Research by the Chartered Management Institute and Campaign for Learning - "Coaching at Work".
Results issued in a press release dated May 16, 2002:

1)	80% of executives say they think they would benefit from coaching at work and dismiss the suggestion that coaching is just another fad.
2)	Virtually all managers (96%) think coaching should be available to every employee, regardless of seniority
3)	85% of managers say the main value of coaching is in enhancing team morale
4)	80% of managers value coaching for generating responsibility on the part of the learner

Institute and Campaign for Learning, supported by Lloyds TSB.
While 33% of respondents had received coaching themselves, 80% believe that they would benefit from coaching/more coaching in their place of work while 93% believe that coaching should be available to all employees. Coaching was perceived as great benefit in a range of areas. Not surprisingly development of task-specific skills was seen important but, as if to confirm the great value of "soft skills" within the working environment, Managers also felt they wanted more support to develop personal effectiveness, emotional intelligence, assertiveness or communication skills. All of these are areas where coaching can have a real impact in a short period of time.

HR Survey 2002 - LEE HECHT HARRISON surveyed 488 Human Resource professionals to learn how coaching is being used in their organizations. Companies are increasingly turning to coaching for leadership development, style issues and talent retention, so it makes sense that 55% of respondents said that their organization uses coaching as a one-on-one process intended to maximize management and leadership potential and 54% do so to change behaviors. A surprising number of respondents indicated that their organization uses coaching for personal/psychological counseling (36%), advice on appearance or attire (13%) or preparation for a major speech or presentation (11%).

Research by the International Personnel Management Association (IPMA), results of which were published in January 2001, concluded that

•	"ordinary training typically increased productivity by 22%, while
•	training combined with coaching increased productivity by 88%".

Research by Vision Quest Consulting 2001, found that of all clients interviewed

•	"100% increased their ability to deal with business challenges by 75% or more”
•	“88% improved their job satisfaction by 75% or more”
•	“80% improved their ability to stay focused under pressure”
•	“78% increased their productivity at work by at least 50%”

Research by the Manchester Group Inc in January 2001, found that:

•	"Executive Coaching yields return on investment of almost six times the initial investment in a typical coaching assignment."
•	"Companies who have provided coaching to their executives and their teams have realized improvements of over 48% in productivity, quality and organizational strength."
•	"Executives who have received coaching have reported improvements of over 60% in working relationships with direct reports and peers, teamwork, job satisfaction and conflict resolution."

TANGIBLE BUSINESS IMPACTS: (Frequency of impacts reported by executives)

•	Productivity	53%
•	Quality	48%
•	Organizational Strength	48%
•	Customer Service	39%
•	Reduced Complaints	34%
•	Own Retention	32%
•	Cost Reductions	23%
•	Bottom Line Profitability	22%
•	Top Line Revenue	14%
•	Reduced Turnover	12%
•	Other Business	7%

INTANGIBLE BUSINESS IMPACTS

•	Improved Relationship: Reports	77%
•	Improved Relationship: Stakeholder	71%
•	Improved Teamwork	67%
•	Improved Relationship: Peers	63%
•	Improved Job Satisfaction	61%
•	Reduced Conflict	52%
•	Increased Organizational Commitment	44%
•	Improved Relationship: Clients	37%
•	Other Intangibles	31%

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